Stem cell reserach could be the key to future healthcare in the UK. Photograph: Reuters

The prime minister will this month announce the creation of a £30m centre to turn scientists' stem cell research into a new multimillion-pound industry to help drive Britain's recovery.

The cell therapy centre, which will open in April 2012, is part of a £220m programme to turn British skills into manufacturing success. Stem cell research has been selected for the country's second technology and innovation centre as British scientists are world leaders in the development of treatments for conditions including Parkinson's and prostate cancer, and in skin regeneration for burns victims.

"This centre will ensure the technology and people stay in Britain, and Britain can profit from the British scientific success," said David Bott, director of innovation at the Technology Strategy Board (TSB).

Bott said that in the past the commercial exploitation of British ideas has taken place abroad because scientists and other experts had left in the "brain drain", notably to the US. However, some stem cell scientists have left America in recent years because of strict government rules on the highly controversial research.

The new stem cell centre, which is likely to be located in south-east England, will receive £10m of funding from the government, £10m from other awarding bodies such as the EU, and £10m from companies using the site.

Pharmaceutical firms Pfizer, GlaxoSmithKline and AstraZeneca have committed to the project. But the site is aimed primarily at small British companies, which will use it to exchange ideas and test the production of new products. "It will have a test manufacturing facility to help labs convert a couple of grams of potentially life-saving cells into kilos of the stuff that can be sold commercially," Bott said.

David Willetts, the universities and science minister, said: "The cell therapy centre will be key to the future of healthcare in the UK. Regenerative medicines have the potential to play a vital role in the next generation of healthcare, offering cures for conditions such as Parkinson's, diabetes and heart disease.

"We are in a strong position to maximise the opportunities for growth that our world-class research base, an active commercial sector and unique links with the NHS offer.

"Establishing a network of world-leading centres across a range of technology areas will ensure that we stay at the forefront of global innovation and technology."

The global cell therapy industry is expected to be worth more than £3.1bn a year, according to Professor Chris Mason, professor of regenerative medicine bioprocessing at UCL.

The TSB, a quango that reports to the Department for Business, will open a high-value manufacturing centre next month and an offshore renewable energy centre next summer. A further three sites are planned before April 2012. Options for those sites include future internet systems, photonics (lasers), digital media and space.

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